Simmons First National Corporation (SFNC) has reached a new 52-week high, with its shares trading at $21.81. This milestone reflects the strong performance of the company over the past year, despite the challenging economic environment. The 52-week high of $21.81 is a significant achievement for SFNC, demonstrating the company's resilience and potential for growth. Over the past year, Simmons First National has seen a substantial increase in its value, with a 1-year change of 12.09%. This positive trend indicates a robust financial health and a promising outlook for the company's shareholders.
In other recent news, Simmons First National Corporation had its stock target cut by Keefe, Bruyette & Woods, who maintained a Market Perform rating. This adjustment followed the bank's Q1 2024 earnings report, which fell short of estimates mainly due to lower-than-expected net interest income. The bank's net interest margin declined slightly, and non-performing assets saw an increase. Keefe, Bruyette & Woods has revised its earnings estimates for 2024 and 2025 downwards, aligning its forecast more closely with street expectations.
In more recent developments, Simmons First National Corporation reported strong loan growth for Q1 2024, surpassing expectations primarily due to construction fundings. The bank aims to maintain this growth in the low single-digit range for the rest of the year. The company also reported success in deposit growth on the interest-bearing side, with margin expansion anticipated to gradually increase in the second half of the year.
Simmons First National Corporation's credit portfolio remains stable, with classified loans flat and past due loans decreasing. Despite industry-wide challenges, the bank has demonstrated successful deposit growth and expects deposit cost increases to moderate in the second quarter. These recent developments indicate that Simmons First National is maintaining a stable and disciplined growth trajectory.
InvestingPro Insights
As Simmons First National Corporation (SFNC) celebrates its new 52-week high, investors are keenly observing its financial metrics and market performance. According to InvestingPro data, SFNC boasts a market capitalization of $2.73 billion and a price-to-earnings (P/E) ratio that stands at 16.1, reflecting a potentially reasonable valuation in the current market. Notably, the company has demonstrated a strong commitment to shareholder returns, having raised its dividend for an impressive 51 consecutive years, with a current dividend yield of 3.91% as of mid-2024.
InvestingPro Tips highlight that while analysts have recently revised their earnings expectations downwards for the upcoming period, SFNC still shows promising signs. The company has not only been profitable over the last twelve months but is also predicted to maintain profitability this year. Moreover, investors may take interest in the fact that SFNC has shown a strong return over the last month, with a 1-month price total return of 26.77%. With such dynamics at play, those interested in a deeper analysis may find additional InvestingPro Tips by visiting https://www.investing.com/pro/SFNC. For those looking to leverage the full suite of insights, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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